CCP accepts commitments of companies to comply with competition act

ISLAMABAD - The Competition Commission of Pakistan (CCP) has issued an order disposing off show cause notices issued to three undertakings for violation of Section 10 of the Competition Act, 2010, after accepting their commitments to comply with the provisions of the Competition Act.

CCP had received a complaint from M/s Atlas Honda Limited alleging that the three undertakings M/s Shafique & Sons, M/s Pak Hero Industries (Pvt.) Limited and M/s United Motors Company had resorted to the fraudulent use of its distinctive and trademarked ‘Wing Device’ logo. The company alleged that its registered logo/trademark was an identity of Honda motorcycles and the act of the undertakings was misleading the customers and was capable of harming the business interest of Atlas Honda Ltd.

An inquiry conducted by CCP had recommended to issue show cause notices to the undertakings for their prima facie violation of Section 10 of the Competition Act.

The bench, while disposing the show cause notices, accepted the commitments of M/s Shafique & Sons and M/s Pak Hero Industries (Pvt.) Limited on condition that their respective brand names ‘JINAN’ and ‘PAK HERO’ will accompany their logos on all their products and promotional materials to avoid likelihood of deception in future. The third company, M/s United Motors Company, was recommended by CCP to use its brand names ‘SHINE STAR’ and ‘UNITED SEVEN STAR’ along with its logo on all its products and promotional materials to avoid likelihood of deception in future.

The bench concluded that none of the undertakings could be held responsible for resorting to fraudulent use of Atlas Honda Ltd’s Wing Device within the meaning of Section 10 (2) (d) of the Competition Act. Furthermore, the use of objected logos did not amount to distribution of false and misleading information, which is capable of harming the business interest of the Complainant under Section 10 (2) (a) of the Competition Act.